Asana, Inc. Q2 FY2026 earnings call

• Dustin introduced the vision of transforming work collaboration with the work graph, emphasizing Asana's position to lead in AI-driven collaborative work management.
• Dan highlighted Q2 revenue growth, AI Studio ARR doubling, non-GAAP operating margin expanding to 7%, and customers viewing Asana as a trusted partner in mission-critical workflows.
• Anne discussed enterprise motion scaling, international growth, foundational service plans (FSPs) improving customer health, and product updates like AI Studio Plus and smart workflow gallery.
• Sonalee detailed revenue, NRR, profitability, balance sheet, and operational leverage driving margin expansion.

Total revenues for Asana's second quarter fiscal year 2026 were $196.9 million, up 10% year over year, exceeding the high end of guidance. Core customers (spending $5,000 or more annually) numbered over 25,000, with revenues from this cohort growing 12% year over year and representing 76% of Q2 revenues. Customers spending $100,000 or more on an annualized basis were 770, growing 19% year over year. Dollar-based net retention rate (NRR) was 96%, with core customer NRR at 96% and $100,000+ customer NRR at 95%. Gross margin held steady at 90%.

• Q3 fiscal 2026 revenue expected $197.5M-$199.5M (7.4-8.5% growth), non-GAAP operating income $12M-$14M (6-7% margin).
• Full-year 2026 revenue revised to $780M-$790M (8-9% growth), non-GAAP operating income $46M-$50M (6% margin), with sequential margin improvement expected.

• SMB top-of-funnel pressure from evolving search and paid media dynamics.
• Buyer scrutiny and elongated decisions related to software stack transformation efforts.
• Potential downgrade activity in the second half, particularly in the tech vertical, and impact of AI search on traffic and conversion.

Q: Brent Bracelin asked Dan about his background and why he joined Asana, and any surprises since joining.

A: Dan cited AI's potential to transform the enterprise and Asana's position to deliver human-AI collaboration, mentioning spending time with customers to understand their needs.

Q: Alex Zukin asked about AI Studio use cases and demand environment.

A: Anne noted AI Studio use cases are repeatable with prepackaged workflows, and demand environment has increased buyer scrutiny but not worsened, with focus on higher quality traffic conversion.

Q: Steve Enders inquired about SEO headwinds and accounting for them in guidance.

A: Anne discussed investing in AI-driven experiences and content strategy to offset adverse effects, Sonalee mentioned revised guidance accounts for SMB and AI search headwinds.

Q: Matt Bullock asked about tech renewals and AI Studio preventing down-sell.

A: Anne talked about improved renewal hygiene and utilization, with AI Studio and FSPs mitigating downgrade pressure.

Q: Rishi asked about collaborative AI and thought leadership.

A: Dan discussed AI needing context from the work graph for productivity, and Asana aiming to be a thought leader in the agentic enterprise.

Q: Lucky Schreiner asked about partners and AI Studio in consolidation deals.

A: Anne stated partners are critical, with certified partners on AI Studio and higher net retention in partner-managed accounts.

Q: Kincaid asked about AI Studio success measures and future outlook.

A: Anne mentioned expanding AI Studio access, driving use case adoption, and Sonalee noted focus on self-serve conversion and AI Studio ARR ramp.

Q: Jackson Ader asked about tech renewals and hiring timing.

A: Anne said tech renewals are healthier than last year, Sonalee noted hiring timing was due to calendar, not deliberate.

Q: Josh Baer asked about AI Studio go-to-market.

A: Anne explained self-serve for SMB and smaller accounts, and selling into installed base for larger accounts, with new customers adopting AI Studio from start.

Q: John asked about Asana's tech differentiation and downgrade pressure.

A: Dan talked about AI needing context from the work graph for differentiation, Sonalee said downgrade pressure in second half is smaller and seasonal.

Q: Taylor McGinnis asked about demand trends and SMB partnership.

A: Anne discussed ongoing demand dynamics, with focus on multiple products to offset SMB top-of-funnel pressure.